Oil era is nearing an end amid no economic thinking to save Iraq

Recent statements by Iraq's Minister of Finance Ali Allawi regarding the end of oil usage during the next decade raised concerns among Iraqi circles, while economic experts emphasized the need for Iraq to find alternatives of oil.

In a statement reported by Al-Mada newspaper, Finance Minister Allawi warned that oil would collapse forever in 10 years, and Iraq would lay off oil employees, attributing the reason to Iraq's continued dependence on oil, which constitutes more than 90% of state revenues.

Iraq's oil reserves are considered the world's fifth-largest proven oil reserves, with 140 billion barrels.

The issue is not new

Economic expert and head of the Iraqi National Business Council, Daoud Abdul Zayer, told PUKmedia that the issue is not new and that observers and specialists have known about this issue "since 2018, and even from 2015."

"Things became clearer as oil began to exit the energy market and turn into a raw material after measures to address climate problems which have put pressure on companies to switch to clean energy," he said.

"Yes, the price of oil is low, but clean energy is the main and desired goal for the whole world, and also to let go of oil as a major energy source," he said.

"It is believed that oil will change radically in the next 10 years and become one of the raw materials in some countries. In underdeveloped countries, the oil will remain as a source of energy," he added.

Zayer believes that what the Minister of Finance brought is not new, but what is new and required is the solution.

He pointed out that Iraq possesses great capabilities other than oil that are not used and neglected due to corruption.

For his part, economic expert Dr. Nasser al-Kinani stressed that the Minister of Finance is not the only one in the world talking about the end of oil.

Kinani told PUKmedia that the Minister of Finance's statements are predictive, and he is not the only one in the world talking about such a topic.

"We have moved from wood to coal and then discovered oil, and today there are alternative energies that the world is heading towards due to environmental pollution and global warmings," he said.

"Most vehicles and factories that manufacture them will make them operate with alternative energy in the coming years, whether with solar energy or any other energy, which means that the demand for crude oil will drop, but this does not mean that it will run out or end because the largest companies around the world that work in oil field belong to officials and influential people," he added.

What is the solution?

Undoubtedly, Iraq is not the only country facing the end of oil, but the question is what are the ways to address it so that Iraq can face any crisis resulting from the world's turning to alternative energy instead of oil?

Economic expert and head of the Iraqi National Business Council, Daoud Abdul Zayer, says that the "treatment requires serious work by specialists," pointing out that there is no economic thinking in the relevant departments to change this reality.

He also stressed that "dependence on oil is a mistake to build a strong state with a strong economy and a status quo among the region's countries," expressing regret that the state has not taken any action on this matter so far. 

Meanwhile, Kinani emphasizes the need to search for oil alternatives from now instead of waiting for the oil to expire.

"We in Iraq have to search for oil alternatives and find other sources for the economy," he said.

"We are supposed to have industries and agriculture without relying on oil," he added.

Kinani wondered: "Why do we have to wait for ten years? We must start now."



PUKmedia